How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jane T (LLC) Your Own Question
Jane T (LLC)
Jane T (LLC), Attorney
Category: Business Law
Satisfied Customers: 8435
Experience:  Worked in corporation's law department; business formations, formalities, and other business matters
Type Your Business Law Question Here...
Jane T (LLC) is online now
A new question is answered every 9 seconds

Hi Jane, Jack Squelch is the CEO and 25% stockholder of

Customer Question

Hi Jane,

Jack Squelch is the CEO and 25% stockholder of GEE Inc. He receives an offer to buy the company from a LBO firm called Asset Strippers Inc. He knows that Asset Strippers is interested in selling off the real estate assets of GEE and want to make a quick buck that way. They offer him $35/share as against the prevailing market price of $25. He does not appoint independent consultants to evaluate the bid, and advises the Board of Directors that the offer is a good one and that the company should accept it. The Board acts on this advice and passes a resolution to sell the company to Asset Strippers Inc. Has any violation of the Securities Laws been committed?

Analyzed duties of directors.

Evaluated whether Squelch violated duty of loyalty.

Discussed special obligations of 10% shareholders.

Cited appropriate case law.

Determined that Squelch was liable.
Submitted: 8 years ago.
Category: Business Law
Expert:  Jane T (LLC) replied 8 years ago.



Here is your answer.


Please click on the link above which will open up a new web page.


On the new web page click on the text that says "click here to begin download". This will open up a Word box. Click on the word "Open" in that box to open the file and read the answer.


SAVE that answer to your PC so that you can access it at any time.


Let me know when you are satisfied with the writing and I will then disable the link on this answer to prevent anyone else from viewing or seeing the response I provide here for you. This can help prevent plagarism.